The Indian government, led by Prime Minister Narendra Modi, has approved a new plan called the PM-eBus Sewa-Payment Security Mechanism (PSM) scheme. This program aims to bring more electric buses (e-buses) to the streets, making public transport cleaner and better for the environment. The scheme will have a budget of ₹3,435.33 crore and will run from 2024 to 2029.
Why Electric Buses?
Today, most buses in India run on diesel or CNG, which causes air pollution and harms the environment. But e-buses are cleaner and quieter. They don’t release harmful gases and cost less to operate in the long run. However, these buses are expensive to buy, which makes it hard for Public Transport Authorities (PTAs) to afford them.
How the Scheme Helps
To solve this problem, the PM-eBus Sewa scheme will help PTAs get e-buses through a special Public-Private Partnership (PPP) model called the Gross Cost Contract (GCC). Under this model, the PTAs won’t have to pay for the buses upfront. Instead, Original Equipment Manufacturers (OEMs) or operators will buy and operate the e-buses, and the PTAs will make monthly payments.
One challenge with this plan is that OEMs/operators worry they might not get paid on time by the PTAs. To fix this, the government will set up a payment security fund. If the PTAs delay or miss payments, the Convergence Energy Services Limited (CESL) will step in and pay the OEMs/operators from this fund. Later, the PTAs or the states will repay CESL. This way, the OEMs/operators will feel safe about getting paid, and more e-buses can be rolled out.
What Does the Scheme Do?
This plan will bring 38,000 e-buses into service across India by 2029. Each e-bus can be operated for up to 12 years. This will be a huge step forward in making India’s public transport system cleaner and more efficient.
The program will also help reduce greenhouse gas emissions, which cause global warming and climate change. By switching to e-buses, India will also use fewer fossil fuels like diesel, which will help the country save energy and money.
Benefits for States and Cities
The PM-eBus Sewa Scheme will benefit Public Transport Authorities all across India, from states and union territories (UTs) that decide to join the program. Cities with a high number of buses will be able to switch more of their fleet to electric, improving air quality and reducing noise pollution in busy urban areas.
Encouraging Private Sector Participation
The government is also encouraging the private sector to get involved in the program. By supporting private operators, India hopes to speed up the adoption of electric buses across the country. This scheme will bring new business opportunities and create more jobs in the growing electric vehicle (EV) industry.
A Greener Future
In the long run, the PM-eBus Sewa initiative will help India meet its environmental goals, making cities cleaner and healthier for everyone. It will also help reduce the country’s dependence on fossil fuels and move towards a more sustainable future. By promoting electric mobility, India is taking strong steps toward cutting down pollution and becoming more energy-efficient.
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